Six new members to face spending rap

Published: 6 May 2004 y., Thursday
The warnings mark the first step in a disciplinary procedure designed to limit budget deficits - or surpluses - to less than three percent of GDP. In theory repeated transgression from these rules could result in massive fines, however no such fines have ever been imposed and the new members are likely to be given significant leeway to put their books in order. According to the Spanish financial daily Cinco Dias, Poland (with a deficit of 4.1%), Hungary (5.9%), the Czech Republic (12.9%), Slovakia (3.6%), Cyprus (6.3%) and Malta (9.7%), are all likely to receive warnings in the coming weeks. According to newswire EFE, the new economic affairs commissioner, Joaquín Almunia, will propose next Wednesday (12 May) that disciplinary procedures be initiated. The move is likely to be seen as a message that the new member states should move toward convergence with the euro zone's rules without delay.
Šaltinis: euobserver.com
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